Deutsche Telekom is mulling two acquisitions in Eastern Europe as it looks to reinvigorate operations in a region beset by regulatory and economic challenges, according to a report from Dow Jones Newswires.

Citing sources familiar with the matter, Dow Jones claims the German incumbent is pursuing a takeover of GTS Central Europe (Warsaw, Poland), a broadband optical and IP network provider.

Currently owned by a group of financial investors, Deutsche Telekom (Bonn, Germany) is said to be in discussions to pay around €600 million ($775.7 million) for the asset.

It may also be under pressure to buy the 40% of T-Mobile Czech Republic (Prague) recently put up for sale by Mid Europa Partners, a private equity group, according to Dow Jones.

The operator recently embarked on a new investment program that involves increasing capital expenditure in Germany and the US while diverting a greater proportion of what it spends in Europe into funding the rollout of LTE, fiber-optic and IP-based networks.

With almost all of its European subsidiaries reporting a decline in sales last quarter, the company is also keen to maximize efficiency across its operations, which could mean gaining more control over assets it does not own outright.

GTS Central Europe operates a data center and fiber optic network across the region and would certainly tie in with Deutsche Telekom’s plans to increase investments in next-generation networks and bolster efficiency.

According to Dow Jones, the business reported earnings before interest, tax, depreciation and amortization of €103 million in 2012, on revenues of €387 million.

The sources cited by Dow Jones say Deutsche Telekom is happy with its 60% stake in T-Mobile Czech Republic but ready to purchase the shares it does not own to keep certain types of buyer out of the business.

The preferred partner would be another financial investor, according to the report.